An elegant, detailed and accurate news site for those interested in the maritime business in the Southeastern United States, Caribbean and Central America

October 14, 2016

Intermodal Fortress Investment Group LLC is exploring a sale of Florida East Coast Railway Corp., the coastal freight operator it took private in 2007, according to people familiar with the matter.

Asset manager Fortress is working with Barclays Plc and Morgan Stanley to weigh options for Jacksonville-based Florida East Coast Railway, the people said, asking not to be named as the details aren’t public. The company is likely to attract interest from other private equity firms, infrastructure firms and railway operators, the people said.

A spokesman for Barclays declined to comment.

Representatives for Fortress and Morgan Stanley didn’t immediately respond to requests for comment. The holding company of Florida East Coast Railway—Florida East Coast Industries Inc.—was taken private in 2007 by funds managed by Fortress in a transaction valued at about $3.5 billion.

The fund later spun off the railway operations into a separate company, leaving real estate, logistics and telecommunications assets under the FECI umbrella. Fortress, based in New York, had about $70.2 billion in assets under management as of June 30, according to its website.

Florida East Coast Railway can trace its roots back to 1895, when industrialist Henry M. Flagler bought the Jacksonville, St. Augustine, Halifax, and Indian River railroads to create a transportation route along the state’s coastline. It now operates about 350 miles of freight rail.

April 01, 2016

Amazon plans to use container ships as DCs, and deliver directly by drone... ooops what about Customs

By Gavin van Marle 01/04/2016Amazon is building on its recent entry into ocean freight forwarding with plans to invest billions of dollars in its own container shipping fleet.

It is seeking new economies of scale in every area of its international supply chain.

A person who was familiar with a person familiar with the matter, told The Loadstar that Amazon was now developing a strategy of not just controlling the entire end-to-end of its supply chain, but every other supply chain too.

“What Jeff Bezos has worked out is that if Amazon delivers absolutely everything in the world, then it really doesn’t matter what the cost of shipping will be – we’ll all have to pay it.

“What he’s trying to do is consolidate the freight buyer’s market to just one: Amazon. Walmart is a target; Home Depot is a target; Target even admits it’s a target, by calling itself a target.

“That’s the beauty of disruptive technology – Bezos is using Amazon’s cutting-edge tech to become the world’s first retail oligopoly, integrated into an oligopsony – and no one realises that’s happening; right under their very noses,” he allegedly said.

“Acquiring ships is the final part of that strategy. Amazon’s advanced predictive data has outlined that, with so much overcapacity in the global container shipping fleet, we should buy all of the world’s containerised consumer goods and store them on the vessels – there’s certainly enough spare space.”

According to Amazon insiders, the company’s supply chain eggheads are also drawing up a new operating model that could see container vessels anchoring off the coast of large consumer centres – such as the San Pedro Bay, Hudson River or English Channel – and using drones to deliver directly from ship to consumers.

This would cut out the need to use congested container ports, troublesome truckers and fractious freight forwarders, as well as redefining the concept of “near-shoring”.

“Owning our own ships also means we can offer ourselves slow-steaming or express container services; and in fact, our developers are now working on the concept of a ship that can steam slow and fast simultaneously – depending on whether customers are “Prime” members.”

Amazon investors are understood to be backing the strategy, and are braced for between two and three decades of excoriating losses.

“After all, that’s no longer than the container lines have been swimming in red ink and because of its edge in tech, no one can play the zero-sum game as well as Amazon,” the source told The Loadstar.

He added that non-containerised consumer goods, such as luxury cars and super-yachts, the big bucks stuff that the hoi polloi can look at in Amazon-delivered glossy magazines, are reserved for Mr Bezos and his friends.

January 19, 2016

Atlas Air Worldwide to Acquire Southern Airx Strategically Compelling, Highly Complementary Businessx Immediately Accretive All-Cash Transaction; No Debt Being Assumedx Expands Platform into 777 and 737 Aircraft Operationsx Drives Greater Diversification, Scale and Global FootprintPURCHASE, N.Y., January 19, 2016 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW)today said that it has entered into a definitive agreement to acquire privately held Southern AirHoldings, Inc., a premier provider of intercontinental and domestic air cargo services, in animmediately accretive, all-cash, debt-free transaction valued at approximately $110 million. Thetransaction is subject to customary closing conditions and approval by the U.S. Department ofTransportation, and is expected to close in the next few months.Southern Air is the parent company of Worldwide Air Logistics Group and its two operatingsubsidiaries, Southern Air, Inc. and Florida West International Airways, Inc.“We are very pleased to announce a strategically compelling, highly complementary andimmediately accretive acquisition of Southern Air,” said William J. Flynn, President and ChiefExecutive Officer of Atlas Air Worldwide. “And we are eager to capitalize on the substantialopportunities that the transaction will provide, especially 777 and 737 aircraft operations.“The result will be a more diversified and profitable company offering access to the widest rangeof modern, efficient aircraft, together with a broader mix of services and a greater scale andglobal footprint that will drive significant value for our customers and shareholders.”“We very much look forward to joining the Atlas Air family of companies,” said Daniel J.McHugh, Chief Executive Officer of Southern Air Holdings. “We share the same commitment to2providing superior customer service via our exceptional team of aviation professionals. AndSouthern Air will now have a strong and viable parent to enable us to continue to grow.”

Strategic and Financial Benefits of Transactionx Enhanced Service Offerings and Customer Relationships: The transaction provides AtlasAir Worldwide immediate entry into 777 and 737 aircraft operating platforms, with potentialfor developing additional business with existing and new customers of both companies.Southern Air’s main operating company currently flies five 777-200Fs and five 737-400Fsunder flight services (CMI, or Crew, Maintenance and Insurance) agreements with DHLExpress, the leading global brand in the logistics industry.The platforms provided by these aircraft will augment Atlas Air Worldwide’s ability to offercustomers the broadest array of aircraft and operating services for domestic, regional andinternational applications.x Complementary Businesses: Atlas Air Worldwide and Southern Air have complementaryoperations, which will aid in providing seamless operations for customers. Further, thetransaction will enhance Atlas Air Worldwide’s position as a leading global provider ofoutsourced aircraft and aviation operating services.Southern Air’s highly professional, experienced workforce and its capabilities complementAtlas Air Worldwide’s 747 ACMI (Aircraft, Crew, Maintenance and Insurance) and Charteroperations, its 747 and 767 CMI services, and its freighter-centric Dry Leasing portfolio of777, 757 and 737 aircraft. Together, the companies will have a fleet of more than 75 aircraft.x Increased Revenues: The combination with Southern Air is anticipated to addapproximately $100 million to Atlas Air Worldwide’s annual revenues and provide a solidfoundation for additional growth.x Immediately Accretive to Earnings: The transaction is also expected to be immediatelyaccretive to Atlas Air Worldwide’s adjusted earnings per share in 2016 with EBITDA andadjusted net income margins in line with Atlas Air Worldwide’s. The impact of thistransaction will be included in Atlas Air Worldwide’s 2016 earnings framework, to bediscussed during the company’s next earnings release on February 18, 2016.x Transaction Funding: Reflecting the company’s balance sheet position, Atlas AirWorldwide intends to fund the acquisition of Southern Air using available cash on hand.About Atlas Air Worldwide:Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operatingservices. It is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Holdings, Inc.(Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through3Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighteraircraft.Atlas, Titan and Polar offer a range of outsourced aircraft and aviation operating services thatinclude ACMI service – in which customers receive an aircraft, crew, maintenance and insuranceon a long-term basis; CMI service – in which customers receive crew, maintenance andinsurance but not an aircraft; express network and airport-to-airport cargo service; cargo andpassenger charters; and dry leasing of aircraft and engines.Atlas Air Worldwide’s press releases, SEC filings and other information may be accessedthrough the Company’s home page, www.atlasair.com .About Southern Air Holdings:Southern Air Holdings is the parent company of Worldwide Air Logistics Group, Inc.Worldwide is a leading provider of domestic and international ACMI and CMI air cargo servicesthrough its separate operating subsidiaries, Southern Air, Inc., which operates Boeing 777 and737-400 aircraft, and Florida West International Airways, Inc., which operates Boeing 767-300aircraft. Worldwide offers customers highly reliable and efficient air cargo business platformswith a strong record of performance excellence and safety.

November 05, 2015

The air cargo community, led by airports, are taking matters into their own hands to encourage greater use of the mode by pharma shippers.
Yesterday, Miami airport became the second globally, and the first in the Americas, to achieve CEIV pharma certification. In a noisy press event at Air and Sea Cargo Americas in Miami, the airport noted huge growth in its pharma business and its plans to become a leading global pharma hub.

The state of Florida sponsored the certification, hoping to catch a share of the $300bn pharma market. The airport last year saw $3.3bn-worth of pharma pass through the airport – 80% growth since 2010.
The pharmaceuticals business in Latin America is growing, with new markets developing, in particular in Colombia.
“Cargo was flat globally in 2014, and we grew,” said Emilio Gonzalez, CEO of Miami-Dade Aviation Department. “I think we’ll do just fine this year but we have to move beyond flowers and fish. We have indentified the pharma business, and we are turning into the perfect transhipment centre.”
Steven Polmans, cargo head at Brussels Airport, the first to be certified, urged more airports to become CEIV certified.
“We didn’t do it for competitive advantage. We want to grow the whole pie,” he said, speaking on the sidelines of the event.
“We see that shippers are getting more involved in the logistics supply chain, including which airline or airport to choose. We want pharma shippers to see that we have a high-quality service for pharmaceuticals to the benefit of the whole air cargo industry.”
Global Distribution Practice certification varies around the world and is mostly intended for warehousing and storage, while CEIV, which is IATA-validated, is a standardised programme, focused specifically on air cargo logistics.
“GDP is only legislation for basic requirements. It doesn’t audit the pharmaceutical chain. CEIV has everything GDP requires, but so much more.”
While the necessary training and infrastructure can be costly – making it uneconomic for airports with naturally small pharma flows – those with existing flows and training programmes would find it better value. Re-tests are required every three years.
More CEIV companies are expected to be announced in coming months.
“It started slowly but more large companies are coming on board, and it’s picking up speed. Pharma shippers are pleased with it and it will grow the whole air cargo pie,” added Mr Polmans.
He said cargo volumes at Brussels had shot up since it became certified. “Shippers were tired of air cargo – there was too much mishandling.”
One pharma shipper had found that 63% of its shipments had seen a temperature variation over the summer months.”That’s just gambling,” said Mr Polmans.
IATA’s regional vice president Americas said that pharma shipment damages amounted to $12bn last year.
“This is unacceptable for a $300bn market. CEIV improves the quality and reduces the losses from mishandled goods.”
Mr Polmans added: “We are a very fragmented industry and that’s part of the reason we are not making sufficient progress. I want to be an airport, and a person, that’s acting for the benefit of air cargo. I don’t want to be commenting from the stadium – I want to be the coach, and have some influence over the game.”

September 15, 2015

Shippers, forwarders, shipping lines and container terminals “urgently” need to begin discussions over the practicalities of implementing the International Maritime Organization’s (IMO) new regulation on container weights.

That was one of the chief conclusions of Friday’s International Cargo Handling Coordination Association (ICHCA) seminar on container weighing in London, with some delegates warning that the legislation, due on 1 July 2016, could lead to chaos.

The new requirements, formally an amendment to the IMO’s existing Safety of Life at Sea (Solas) regulations, have been designed to reduce the number of accidents globally caused by containers whose weights have been misdeclared by shippers and their agents.

The new law says they must verify the weight declared on the bill of lading. It has been criticised as difficult to enforce, while many sea freight buyers are said to be completely unaware of the legislation.

From next summer, shippers will have to prove the weight of their containers through one of two methods: weighing the loaded container (Method 1); or weighing the cargo and adding the tare weight of the container (Method 2).

Richard Brough, ICHCA technical advisor, said: “There is no exemption from weighing in some form – if you are a Method 2 shipper, you will still have to weigh the cargo, the calculation aspect comes from adding the cargo weight with the tare weight of the container.”

Washington-based liner shipping lobby group the World Shipping Council (WSC) was one of the proponents of the new legislation. It initially insisted on Method 1, but later acquiesced to shipper arguments, led by the Global Shippers Forum, that Method 2 would provide the same level of assurance to ships’ masters, ultimately be responsible for accepting or rejecting containers waiting to be loaded.

However, it will remain up to national jurisdictions to decide if they will accept both methods, and WSC senior vice president Lars Kjaer said the US had already decided it will only accept Method 1 as proof of the verified gross mass (VGM) of a container.

“But, come 1 July next year, there will be containers showing up at the gate without signed verification forms – so how do we manage that? What do we do with those boxes? The whole operational side needs to be discussed and sorted out,” he said.

In contrast, the UK’s enforcement body, the Maritime & Coastguard Agency (MCA), has said it will accept Method 2, and has begun developing an accreditation scheme for UK shippers in concert with the Freight Transport Association (FTA).

MCA hazardous cargo advisor Keith Bradley said it was “essential that we make Method 2 work”, as with the right process it could be much more efficient.

“Many members involved in the UK’s maritime trade are already operating to a variety of standards, such as AEO or ISO9000, and many companies have enterprise resource systems (ERPs) such as SAP that means they will know the weight of their cargo.

“We have also had a very clear message from the port industry that it does not have the weighing equipment, nor does it want to invest in it. But ports have to consider what they are going to do if a box arrives at the port without a VGM,” he said.

UK shippers will need to apply for accreditation to Method 2, with the MCA set to audit applications. FTA director of global and European Policy Chris Welsh said the organisation would be launching a service to help its members with applying for accreditation.

However, John Foord, president designate of the Federation of National Associations of Ship Brokers and Agents, questioned the viability of this approach, given the increasingly tight timeframe.

“It will be interesting to know if the 14,000 FTA members will all be accredited by 1 July 2016… I suspect that simply can’t happen, which means lots of UK exporters will have to use weighbridges. But there isn’t a weighbridge near Felixstowe, for example, and there could be a significant deviations on road journeys to go via a weighbridge on the way to a port.

“There really could be a lot of deviation,” Mr Foord added, “and some of the shipping lines charge shippers £2 per mile. I can see shipper easily having to an extra £50-60 per container just because of this issue.”

September 14, 2015

Lima, Sep. 13. The United States Department of Agriculture (USDA) approved the Cold Treatment Protocol required for the entry of fresh citrus fruits, blueberries and grapes from Peru by including three new Florida State ports starting October 1, Peru's Ministry of Foreign Trade and Tourism informed after learning the USDA's decision through its Animal and Plant Health Inspection Service (APHIS).

The three new ports areJacksonville, Tampa and Manatee.

It should be noted this request was approved since the pilot program for the entry of grapes and blueberries was accepted by the end of 2013, and that for Peruvian citrus fruits in 2014 throughMiami and Fort Lauderdale (Florida), as well as Savannah harbor (Georgia).

According to the Peruvian Trade Office inMiami (OCEX Miami), the standards established by APHIS require the fresh fruits to enter the USA through ports located above the 39° latitude.

However, the Cold Treatment Project was aimed at allowing the entry of fresh and perishable products into theUSA's market through Southern ports. Considering this, it would be possible to reduce the shipping time and final costs to be assumed by the consumer as well as to preserve the products.

Through OCEX Miami, Mincetur has boosted the Cold Treatment Protocol before it was launched in 2012. Likewise, it continuously supports the work undertaken byMiami's Port officials, industry leaders, State and federal representatives, such as the U.S. Agriculture Department, Customs and Florida Perishable Trade Coalition.

The exports of Peruvian grapes to theUnited States increased by 65% between January and July, 2015 compared to the same period in 2014.

July 09, 2015

Attica Holdings S.A., a member of Marfin Investment Group (MIG), announced that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), granted Attica approval to operate through its wholly owned US subsidiary, Superfast Ferries(USA) LLC, a marine route between US and Cuba, in connection with travel or transportation of persons, baggage or cargo between the United States and Cuba. Attica is in the process of applying for appropriate regulatory and other approvals from the Cuban government. Attica Group’s financial and operational success in Greece and the broader South European region has provided the platform for this expansion initiative.

The US-Cuba route enables Attica Group to leverage its long industry experience operating in developed and competitive markets and unique know-how in maritime transport, in the fast growing US-Cuban market.Attica’s fleet of 13 modern and technologically advanced vessels include a number of vessels ideally fit for the US-Cuba route. Two of these vessels have initially been identified for this service, each with carrying capacities of about 1,700 passengers, 700 berths and 2,000 lane meters garage, capable of carrying about 570 cars.

All ferries are fully equipped with restaurants, duty free shops, swimming pool, bars, playroom and other family oriented activities. Spiros Paschalis, CEO of Attica Group, stated, “We are pleased to receive the US government approval and are excited to be able to offer service on the historically important US-Cuba marine route. The US license confirms the reliability, trust and superior quality for which Attica Group’s fleet has been internationally renowned for. Our proposed ferry service would provide daily non-stop transportation between the Port of Miami in Florida and the Port of Havana in Cuba, a distance of 230 miles, in less than 10 hours, in a relaxed and casual atmosphere with our usual superior service standards.”

Spiros Paschalis continued, “Opening up the U.S.-Cuba route is an important step in rebuilding relations between the two countries. We hope to be able to provide travelers an opportunity to experience the immense beauty and rich cultural heritage of Cuba. We are proud to be chosen as trusted operators to carry passengers and cargo back and forth to an exciting new destination.”

June 25, 2015

AAPA 2015 CONVENTION has been set for Nov. 2-4 in downtown Miami at the Intercontinental Hotel. It is a big deal. The 2015 Convention in Miami will represent the 104th in AAPA’s history.

AAPA’s 2015 Convention includes technical and policy committee meetings, as well as business sessions and social networking possibilities for port professionals and others in the marine transportation industry. This year, more than 500 attendees are expected, mainly senior and executive management personnel from port authorities and suppliers to the port and marine industries.

Bait and switch

When PortMiami and the MiamiInternationalAirport pulled out of financially support the World Trade Center Miami’s annual State of the Port Luncheon we wondered what would happen to the bi-annual Sea Cargo and Air Cargo Americas program also underwritten by the port. Who would have thought that the WorldTradeCenter would use the Port-sponsored AAPA convention as bait for an overlapping port and trade event featuring the seaport, the airport, Gov. Rick Scott and Bill Johnson?

Or maybe they just got confused about the dates

Either way, the show hours for the AAPA conference are Monday, November 2, evening reception in the exhibit hall; Tuesday, November 3, 7:30 a.m. - 4:30 p.m. and Wednesday, November 4, 7:30 a.m. – Noon.

Those will be followed by welcome remarks from Rick Scott, Governor, State of Florida who will be introduced by …. You guessed it! … Bill Johnson, Secretary of Commerce, State of Florida; President and CEO, Enterprise Florida, Inc.

At 9:00 a.m., a panel of distinguished transportation and logistics experts will present their views of current trends in trade, the supply chain and transportation, as well as their visions, strategies and forecasts for the growth of the air cargo and sea cargo in the Western Hemisphere for the next two years. The panelists will provide forecasts on the following markets:

Those AAPA attendees who don’t need to check out or to attend the morning Nov. 4 sessions downtown will be able to drive over and hear Jaime Alvarez P., Senior Director Cargo, Copa Airlines; Donald Francey, Head of Key Clients, Sealand (invited); Jose Perez-Jones, Senior Vice President, Seaboard Marine; Mathieu Floreani, CEO for the Americas, DHL Global Forwarding; Ian Morgan, VP Cargo The Americas, Qatar Airways (invited); talk about trends, visions, strategis and forecasts under the direction of Richard Roffman, Publisher, LatinTradeReport.com, as well as Co-host of the nationally syndicated radio talk show “Made in America”.

According to AAPA, its Annual Convention and Expo is recognized as the premier gathering of the seaport industry. “If your customer targets include seaports, marine terminal operators, integrators, suppliers and other industry stakeholders, exhibiting at the American Association of Port Authorities Annual Convention will provide you direct access to the top decision makers--port commissioners and senior level port professional, integrator, supplier, and other stakeholder staff from throughout the Western Hemisphere. We understand that in today's competitive economic climate, strategic and cost-effective marketing has never been more necessary. AAPA is here to guide you and insure your successful expo experience, from exhibit sales through to exhibit floor coordination.”

“The Annual Convention and Expo is AAPA's largest membership meeting of the year. Held every fall in a different port city, the Convention includes technical and policy committee meetings, business sessions and social events allowing port professionals and stakeholders in the marine transportation industry to exchange views and expand business contacts. The Expo is an integral part of the convention program providing opportunities for networking and exchange of ideas.”

An evening reception will be held in the exhibit hall on Monday, November 2. During the business program on November 3-4, 2015, breakfasts, breaks, and 2 pre-luncheon networking events are all held in the AAPA Exhibit Hall. Exhibitors are invited to attend, complimentary, the Convention Business Program.

According to the WorldTradeCenter, Miami, Air & Sea Cargo Americas will bring together top executives from all sectors of the aviation, maritime and logistics industries to exchange views and experiences to enhance the growth of the cargo industry in the Western Hemisphere. Airports, seaports, exporters, shipping lines, freight forwarders, shippers, importers, consignees, equipment and technology suppliers, among others, will interact, exchanging ideas and information. Topics will include security, regional consolidation, manufacturer and shipper needs in high growth cargo, trade facilitation, improving productivity, speed and service quality, responding to market changes and demands from shippers, consolidators and forwarders, and controlling costs while streamlining customer services.

Air & Sea Cargo Americas will be held on November 4 - 6, 2015 at the Miami Airport & Convention Center. The conference and show is designed to:

Increase two-way cargo growth and international business in the Americas

Present updates on the latest security and safety regulations being used in the Western Hemisphere to secure cargo from the intrusion of biological, chemical or explosive materials

Provide a forum on international aviation, maritime and logistics issue in the Western Hemisphere.

According to the Air and Sea Cargo web site its steering committee includes:

May 27, 2015

MIAMI, May 27 (UPI) -- Forecasters say the 2015 hurricane season will bring a surge of storms to the Pacific region while the number of storms in the Atlantic region will remain below normal.

The National Oceanic and Atmospheric Administration's meteorologists said the central Pacific region, which includes Hawaii, could expect five to eight tropical cyclones during the hurricane season, which begins Monday and runs through Nov. 30. An average season has up to five cyclones. The eastern Pacific region will also see above-normal tropical activity, with 15 to 22 named storms, of which seven to 12 are expected to become hurricanes.

At the same time, the Atlantic region should expect six to 11 named storms, of which three to six could have hurricane-strength winds, forecasters said Wednesday. Of those, up to two could become major hurricanes, in categories 3 and higher.

"A below-normal season doesn't mean we're off the hook. As we've seen before, below-normal seasons can still produce catastrophic impacts to communities," said NOAA Administrator Kathryn Sullivan, referring to the 1992 season when Hurricane Andrew devastated south Florida. There were only seven named storms that year.

RELATED

The U.S. hasn't had a major hurricane landfall in nine years

In the Pacific region, El Nino, which brings warm waters and can alter wind and pressure patterns, is the driving force behind the uptick in storms.

"El Nino decreases the vertical wind shear over the tropical central Pacific, favoring the development of more and stronger tropical cyclones. El Nino also favors more westward-tracking storms from the eastern Pacific into the central Pacific. This combination typically leads to an above-normal Central Pacific hurricane season," NOAA said.

Forecasters also said El Nino is already playing a role in the Atlantic season by suppressing wind and pressure.

"El Niño may also intensify as the season progresses, and is expected to have its greatest influence during the peak months of the season. We also expect sea surface temperatures in the tropical Atlantic to be close to normal, whereas warmer waters would have supported storm development, said Gerry Bell, the lead seasonal hurricane forecaster with NOAA's ClimatePredictionCenter.

May 11, 2015

SAN JUAN, PR - Crowley Puerto Rico Services, Inc. announced today that it has further solidified its commitment to Puerto Rico with the execution of a $48.5 million construction contract for a new pier at its Isla Grande Terminal in San Juan, Puerto Rico. In conjunction with the investment, the company and the Puerto Rico Ports Authority (PRPA) have also concluded a 30-year lease extension for the Isla Grande property.

The construction contract was awarded to L.P.C.& D. Inc., of Las Piedras, Puerto Rico, and includes the development of a new 900-foot-long by 114-foot-wide concrete pier and all associated dredging needed to accommodate Crowley’s two new liquefied natural gas (LNG)-powered, Commitment Class ships. Crowley’s terminal expansion plans also include the installation of three new ship-to-shore container gantry cranes, which will be supplied under a separate contract.

“This is a great day for Crowley and the people of Puerto Rico, and a critical next step in our nearly $500 million re-investment in the Puerto Rico trade lane,” said Jose “Pache” Ayala, Crowley vice president, Puerto Rico. “This important project represents close collaboration between private business and PRPA to make a major investment in the infrastructure of Puerto Rico. We are very excited to choose a Puerto Rico-based construction company who will utilize workers on the island and keep the money in the local economy.”

The pier design, using the latest displacement-based performance criteria, has been carefully developed over the past year with the PRPA and Harbor Consulting Engineers, Inc., of Seattle, Wash. As the lead design firm for the project, Harbor is the engineer of record for the project and the duration of the construction. Crowley and Harbor have worked together on infrastructure projects for nearly 40 years.

Now that construction and lease contracts have been signed, Crowley is completing the acquisition of the necessary permits, including those from the U.S. Army Corps of Engineers and other local agencies, which will allow the company to break ground in the coming months. Construction is expected to be complete in April 2017, in advance of the inaugural call of the first new Commitment Class ship, El Coqui.

“This level of investment in the Puerto Rico trade is unprecedented,” said John Hourihan, Crowley senior vice president and general manager, Puerto Rico. “We are excited about the cooperation and support we have received for this project from the PRPA.”

While Crowley builds for the future, the company is responding to the needs of today.

Since mid December, Crowley has, through a number of service enhancements, created additional weekly cargo carrying capacity. Included in these enhancements was the addition of a new flat-deck barge capable of carrying up to 400 additional loads between Jacksonville, Fla., and Puerto Rico. Crowley has also ordered and begun placing into service more than 7,000 pieces of new cargo handling equipment, including 40-foot, 45-foot and 48-foot high cube containers, 20-foot ISO tanks and a variety of fixed and slider chassis.

Crowley has served the Puerto Rico market since 1954, longer than any other carrier in the trade, and occupied the now 75-acre Isla Grande Terminal the entire time, making it the longest continual occupant of any Jones Act carrier in the trade. The company, with over 250 Puerto Rico employees, is also the No. 1 ocean carrier between the island commonwealth and the U.S. mainland with more weekly sailings and more cargo carried annually than any other shipping line.

“We are proud that our investment will create new jobs associated with the pier construction, while at the same time the lease extension solidifies our commitment to jobs associated with our service for years to come,” said Hourihan. “We believe in the market and the Puerto Rico people, and our commitment has never been stronger.”

Jacksonville-based Crowley Holdings Inc., a holding company of the 123-year-old Crowley Maritime Corporation, is a privately held family and employee-owned company. The company provides marine solutions, energy and logistics services in domestic and international markets by means of six operating lines of business: Puerto Rico Liner Services, Caribbean and Latin America Liner Services, Logistics Services, Petroleum Services, Marine Services and Technical Services. Offered within these operating lines of business are: liner container shipping, logistics, contract towing and transportation; ship assist and escort; energy support; salvage and emergency response through its TITAN Salvage subsidiary; vessel management; vessel construction and naval architecture through its Jensen Maritime subsidiary; government services, and petroleum and chemical transportation, distribution and sales. Additional information about Crowley, its subsidiaries and business units may be found on the Internet atwww.crowley.com.